STAND. COM. REP. NO. 3106

Honolulu, Hawaii

RE: H.B. No. 2420

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Hawaiian Affairs, to which was referred H.B. No. 2420, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF HAWAIIAN HOME LANDS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Give practical effect to the Legislature's intent for the appropriation in Act 279, Session Laws of Hawaii 2022 (Act 279), by depositing certain unexpended or unencumbered funds appropriated through Act 279 that are set to lapse on June 30, 2024, into an Act 279 Special Fund and appropriating funds out of the Act 279 Special Fund; and

(2) Provide that moneys from the appropriation out of the Act 279 Special Fund that are unencumbered as of June 30, 2026, shall lapse as of that date.

Your Committee received testimony in support of this measure from the Department of Hawaiian Home Lands and two individuals.

Your Committee received comments on this measure from the Department of Budget and Finance and Tax Foundation of Hawaii.

Your Committee finds that Act 279 appropriated $600,000,000 to the Department of Hawaiian Home Lands to reduce the number of applicants on its waitlist. Your Committee further finds that Act 279 stipulated that any moneys not encumbered for specific purposes shall lapse to the general fund on June 30, 2025. However, article VII, section 11, of the Hawaii State Constitution provides that no general fund appropriation shall be for a period exceeding three years. This measure ensures that the Department of Hawaiian Home Lands will have another year of funds to benefit Department of Hawaii Home Lands' beneficiaries.

Your Committee has amended this measure by:

(1) Making it effective upon its approval; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2420, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2420, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Hawaiian Affairs,

________________________________

MAILE S.L. SHIMABUKURO, Chair